CryptoQuant CEO: Whales continue to accumulate BTC, TradFi may report holding Bitcoin in Q3

The CEO of analytics firm CryptoQuant, Ki Young Ju, stated in a tweet today, March 7, that long-term holders of Bitcoin are continuing to accumulate after the market drop this week, reaching nearly $23 billion in funds, and believes that "something big is happening."

This article is not investment advice.

CryptoQuant CEO: Something Big is Brewing

Bitcoin Whales Increasing BTC Holdings to Record Highs

Firstly, Ki observed a significant accumulation of Bitcoin by whales based on the flow of funds and recent changes in demand from long-term Bitcoin holders, reaching a peak in the amount.

I am quite certain that something big is happening behind the scenes, unprecedented.

Data indicates that the demand for Bitcoin from long-term holders' addresses surged in the past 30 days, accumulating approximately 404,000 BTC worth around $23 billion.

This perspective aligns with analysts from IntoTheBlock, suggesting that whales are seizing the opportunity to buy during price drops, while small investors are selling in panic:

Crypto wallets holding 1,000 to 10,000 BTC maintained confidence during recent declines, continuously accumulating as prices dropped; however, wallets holding less than 1 BTC exhibited strong panic, with the largest fluctuations and declines during the recent market crash.

TradFi Set to Announce Bitcoin Holdings?

Additionally, Ki boldly predicts based on related data:

Within the next year, some traditional financial institutions (TradFi), institutional companies, or government entities are expected to announce their Bitcoin holdings in their balance sheets for the third quarter of 2024.

He added, "Other retail investors may regret not buying due to concerns over the German government selling, the Mt. Gox incident, or other macroeconomic issues."

It is noted that the "2024 Bitcoin Strategic Reserve Act" being pushed by crypto-friendly Senator Cynthia Lummis indeed aims for various states or institutions in the U.S. to purchase and hold Bitcoin, providing a legal pathway for this.

Lummis Bitcoin Reserve Act: Establishing state storage facilities, funding from Fed's gold revaluation

Bullish or Bearish?

Earlier today, Ki clarified the bullish and bearish factors in the current market in another tweet:

Bullish

• Recovery in Hashrate: Hashrate near historical highs, with U.S. miners' breakeven cost at around $43,000 per BTC, stabilizing the market if this price level holds
• Whale Accumulation: Bitcoin long-term holder addresses sold most of their Bitcoin from March to June and have accumulated over 400,000 BTC in the past month
• No Major Selling Pressure: Despite the recent market crash, U.S. BTC spot ETF did not see significant outflows, indicating no imminent large-scale selling pressure

Bearish

• Macro Economic Risks: Macro risks could force BTC to be sold, including economic recession crises, Middle East conflicts, and massive liquidation by Jump Trading
• Indicators Turning Bearish: Some indicators are on the verge of turning bearish, and if this trend persists for over 2 weeks, market recovery may become challenging

In conclusion, I believe the bullish momentum remains intact, but I will reconsider if the crypto market does not show significant recovery within 2 weeks.

Last month, CryptoQuant revealed views on the crypto market partially bottoming out, attributing potential bearish factors to stablecoin liquidity and momentum shortages:

USDT's monthly market value growth remains close to zero, suppressing the potential for Bitcoin price increases.

Has Bitcoin Bottomed Out? CryptoQuant: Indicators Rebound, Stablecoin Liquidity Remains a Major Obstacle